Here's
an article of mine titled :
"SMEs are in Urgent Need of an IPR
and Patenting Infrastructure"
published in the "FINANCIAL
EXPRESS" of 18th February, 2005.
Putting up this article here because this is
the most misused article of mine. In this article, the portion highlighted in
Yellow is the portion LIFTED and USED by many people in their articles &
reports.
Also,
please note that all the words like "IP ALERT", ‘patent
potential’ or “Patential”, etc. had been coined by me.
SMEs are in urgent
need of an IPR and patenting infrastructure. Manisha Gupta Posted: 2005-02-18 12:37:19+05:30
IST Updated: Apr 01, 2008 at 1300 hrs IST ...
www.financialexpress.com/news/smes-are-in-urgent-need-of-an-ipr-and-patenting-infrastructure/127255/0
- Cached - Similar
SMEs are in urgent need of an IPR
and patenting infrastructure
Manisha Gupta
Posted: Friday,
Feb 18, 2005 at 1237 hrs IST
: With
the advent of a knowledge driven economy and in this era of the WTO and Trips,
the focus has shifted from tangible assets of an enterprise to its intangible
ones. For SMEs, it is the
possession of intangible assets such as creative genius, innovation potential
and knowledge capital that now largely determine their competitive edge over
others. The increasing significance of knowledge capital entails adequate
management of the knowledge assets of an enterprise. But apart from the already
prevalent knowledge management or KM as it is popularly called, it is knowledge
protection (shall we say “KP” !) that has to be given much more importance so
as to exploit its wealth generating potential. Thus to stay ahead in business,
adequate and timely protection of its intellectual assets ie its IP is
absolutely essential.
As
opposed to conventional SMEs,
knowledge SMEs such as
design, software and IT, media and entertainment, biotech and
other technology- intensive units are primarily dependent on fast changing technologies.
These have to be globally competitive because their products are either
exported or compete with very high quality products in the domestic markets.
Here continued innovation acts as a major driver of survival. When talking of
innovation, IPRs can’t be far behind.
With
globalisation taking the world by storm, IP protection assumes all the more
significance. Though IPR awareness is only beginning to emerge in India, in the
international IP arena, most countries are expert players in this field and
fully exploit the wealth generating potential of IPRs to their economic
advantage. Hence in this fast and high-tech age of the Internet and rapid
globalisation, there is an utmost urgency
for an IPR and Patenting infrastructure for SMEs in India. This should be at 3
levels: a) within the enterprise b) an intermediation structure and c) a
regulatory and enforcement mechanism. Within the company, IPR awareness and
training will enable it to be on an “IP alert”, keep track of globally evolving
innovations and technologies, use this knowledge to its business advantage and
maintain an IP portfolio. Intermediation structures such as IP attorneys and
institutions would facilitate this process. The regulatory and enforcement
structures such as patent offices, courts and arbitration mechanisms for IP
would ensure speedy, transparent and efficient resolution of conflicts in case
of infringements.
In
India, acquiring IP rights is perceived as a costly and time-consuming affair.
Due to lack of awareness, it is mistaken to be synonymous with patents. SMEs
generally carry out minor improvements, modifications or design and technique
innovations over existing ones, so more than patents, it is “utility models”
(or “petty patents”) which may be appropriate. These are more cost effective,
time efficient and less of a hassle in registration as Compared to
patents. They can prove to be an affordable IP tool for such enterprises,
especially in developing countries where costs are a major concern. One could
take lessons from Japan on how to effectively utilise utility models. What
Indian SMEs ideally need is a “patent plus” regime coupled with a “cost minus”
benefit. Petty patents being one such option, other affordable tools are Trade
secrets, Industrial designs, Trademarks and Domain names, which help build
brands, leading to higher business and export potential.
In
the IP world, it is strictly “first come, first serve!” So the sooner an
enterprise protects its new, high value creations, the better. Such protection
will be an effective long-term business strategy and early returns could be
from licensing, assigning or contracting out its IPRs, which can be traded.
Company lifecycles becoming shorter, innovation and protection are key
components of survival and it is in the business interest of the enterprise to
improve its ‘patent potential’ or “Patential”.
These
enterprises start as very small units housed in incubators and technology parks
and grow rapidly, driven by innovation. To finance their IP portfolio, they
need flexible, multiple stage financing which can only be provided by VCs or
equity investing by high net worth individuals, who are also well networked and
provide strategic perspectives, thus opening a plethora of opportunities.
Companies like Infosys, Wipro, Biocon, Dr. Reddys Lab & Bharti telecom,
which started off as SMEs a few years ago, are now large, globally respected
enterprises. They have an extensive IP portfolio, multi million dollar turnover
and provide thousands of jobs. This makes them robust and fast growing
globalised enterprises, which do yeoman service to the country by generating
export surplus and employment.
Thus
an intelligent and timely IP strategy can add much value, which could be a boon
since SMEs
have the potential of transforming the economic landscape of the country.
The
writer is a consultant on IPR issues pertaining to knowledge and development
